March 28, 2024

Financing EV Home Charger Installation

16 Min. Read

This article was originally published March 15, 2022 and was updated March 28, 2024.

EV adoption is breaking records as more consumers become aware of environmental issues and personal benefits and states push for electrification through diverse programs and incentives.

For many EV owners, going electric is synonymous with savings at the pump and a reduced carbon footprint. However, it also comes with the need for some electrification upgrades at home. While the availability of public charging is growing quickly, at-home charging remains the most convenient option in terms of cost and access.

Thanks to federal, state, and local incentives, at-home EV charging is more affordable than ever. This article will explore charging options, costs, and other considerations for implementing a home EV charging solution.

Financing An EV Charger Installation At Your Home

The transportation sector is going through an unprecedented transformation with the rise of electrification. As many as 10% of new U.S. vehicle sales in 2024 could be electric, a landmark that reflects a growing interest in EVs. In some states, like California, EV sales are already as high as 25% of new vehicle sales.

As an EV driver, you can unlock significant savings and reduce your carbon footprint by using electricity instead of fossil fuels to power your car.

At the local level, EV adoption has several benefits, such as improved air quality and more affordable “fuel.” Experts also believe that developing a public charging infrastructure could positively impact local communities, resulting in increased business revenues and stronger community ties.

Electrification is accelerating thanks to the growing number of consumers who are becoming aware of environmental issues and deciding to take action. Federal, state, and local policies are also playing an important role in shaping EV adoption across the country. Programs and incentives are making EV ownership more appealing than ever by reducing the initial purchase price and making EV home charger installation more affordable.

If you’re considering an EV purchase, you should know that at-home EV charging is a worthwhile investment that will help you get more out of your EV and is more cost-effective than public charging.

How Does an EV Home Charger Installation Work?

When EVs first started appearing in showrooms, charging time and range were the most significant concerns. Most EVs come with Level 1 chargers, which are relatively slow. Level 2 EV chargers replenish an EV much faster than a standard-issue Level 1 EV charger but typically require a separate charger purchase and a professional EV charger installation.

A Level 1 charger only adds three to five miles of range per hour of charging, while a Level 2 charger can add 12 to 80 miles of range per hour, making it ideal for overnight charging. This charging speed difference is a massive benefit for people who need to make longer trips in their EVs or cannot afford to wait for long periods while their EV charges.

Since Level 1 charging is an impractical option for drivers, most EV drivers rely on Level 2 EV charging at home, a solution that requires a dedicated installation process and a licensed electrical contractor with experience in EV charger installation.

A standard EV home charger installation includes the cost of labor, materials, and expertise needed to add a 240V circuit to your existing electrical panel and either install a NEMA 14-50 electrical outlet or hardware the charging station to your electrical panel. The mounting of the charging station is also included in the cost.

As no two homes are exactly alike, a standard installation typically assumes that your garage is attached to your home with your electrical panel nearby and that the distance will not require any complex wiring. In addition, your electrical panel must have:

• Sufficient ampacity to handle the additional charging station load.
• Enough circuit room within your electrical panel to accommodate a new 2-pole breaker.

If your home does not meet these criteria, your licensed electrical can work with you to estimate EV charger load calculations and what additional electrification needs your home has to support EV charging, such as a panel upgrade or load management device.

Keep in mind that your experienced EV charger installer will have additional knowledge and training on the safety and efficiency of installing an EV charging station in your home, which will require a higher quality of materials and different steps to ensure the charger continues to operate safely over time.

What Features Should I Look for in a Home EV Charger?

Choosing an EV charger that aligns with your needs is an important aspect of planning your EV home charging project.

After having a professional assess your current electrical infrastructure, you can narrow down your choice between a plug-in or hardwired model. While hardwired models can outperform plug-in EV charging stations by eliminating a potential point of failure at the dedicated NEMA 14-50 outlet, a plug-in EV charging station can be a better investment if you plan to move at some point in the future as it will be easier to remove.

The charging station’s capacity is another important consideration. The higher the amperage, the faster your EV will charge. However, your charging station’s speed can’t exceed your EV battery’s capacity. There is no point in investing in a higher-performing charging station if your EV doesn’t support faster charging.

You should also compare different charging ports. EV manufacturers are in the process of adopting the North American Charging Standard for their new lineups, and investing in a charging station with a NACS outlet will ensure optimal performance. Compatibility with older J1772 EVs isn’t an issue since adapters exist, but future-proofing your EV home charger installation with a NACS port can be a smart decision. You might also want to consider investing in a dual charging station if you plan on getting a second EV at some point.

Smart features increase the cost of your charging station, but they add value. For instance, some charging stations allow you to monitor and schedule charging remotely. These features can help you take advantage of preferred time-of-use (TOU) rates and save on charging or keep a closer eye on your EV battery’s health.

Bidirectional charging is another valuable feature to consider. This technology allows you to plug in your EV and upload unused energy to the grid for energy credits from your utility or pair your bidirectional-capable electric vehicle with other energy transition technologies such as battery storage to power your home at a later time. While not all EVs support this feature, manufacturers are actively integrating it into their latest models.

Lastly, you should research the equipment’s manufacturer and their warranty. Choosing a charging station from a manufacturer with a reputation for quality is a sound investment.

How Many Amps Do I Need for EV Charging?

EV batteries range from 16 to 80 amps in terms of charging capacity. An at-home Level 2 EV charging station that matches this charging capacity is a good choice, but there are a few additional considerations.

The circuit that powers your EV charging equipment will need a circuit breaker for safety reasons. The usage level of this circuit shouldn’t exceed 80% of the circuit breaker’s rating. For a more detailed breakdown you can read How Many Amps Are Required for a Level 2 Charging Station?

Your home’s electrical panel is another important consideration. Your electrical panel draws power from the grid and distributes it to the different circuits in your home. However, based on amperage, your panel can only draw so much power at a time.

EV charging uses as much as 80 amps, so your panel can quickly become overloaded and fail to power other circuits when your EV is charging. If your home currently has a 100-amp panel, you may find that this is insufficient for general electrical needs, let alone installing an EV charger at home. The solution is to work with a licensed electrician to upgrade your electrical panel and install a higher amperage electrical panel, such as a 200-amp model, that can accommodate EV charging along with other circuits supporting other electrical needs within your home.

A panel upgrade will also make other electrification projects more accessible, such as installing an electric heat pump or charging a second EV.

What Is the Average Cost of EV Home Charger Installation?

A home EV charger installation costs on average  between $800 and $2,000 for a standard, non-complex installation, but can cost more depending on the additional needs and complexities of your home and installation. The cost of the EV charger hardware equipment starts at $500, but you should expect additional costs linked to permits, labor, and any potential electrical upgrades.

Replacing your electrical panel, opting for a hardwired installation, or investing in a high-performing EV charging station with advanced features can increase the total cost of your project.

For a more accurate quote, have a licensed contractor assess your home’s electrical infrastructure, perform an EV charger load calculation, and discuss your options.

Is It Cheaper to Charge an EV At Home?

At-home EV charging comes with an upfront cost, but it’s the most affordable way to charge your EV. On average, residential consumers pay $0.1573 per kWh. With the average EV having a range of three to four miles per kWh, this average residential rate translates to $0.03 to $0.05 per mile. The Department of Energy estimates that the average monthly cost of charging an EV at home adds up to $60.

By comparison, public charging rates vary widely and can be difficult to predict, with rates varying as much as 50% within the same charging network. Rates can even reach $0.30 per kWh for Level 2 charging and $0.40 for DC Fast Charging in California, making at-home charging far more advantageous.

Public charging may be free if your municipality offers this option but lines are often long and public EV chargers are still experiencing challenges with station outages making public charging less convenient than at-home EV charging.

There are more ways to save on charging at home between incentives and electrification technologies.

A growing number of utility providers are supporting electrification by offering TOU rates for EV owners, bill credits, or other incentives. You can also offset EV charging costs by investing in solar panels to produce your own energy or upgrading your home with a battery storage solution that you can charge when TOU rates are low.

Why Do I Need a Licensed Electrician?

It’s best to plan your EV home charger installation project with the help of a licensed electrician or EV charging station installer.

An expert will be able to assess your home’s electrical infrastructure and recommend the best charging option for your needs. They will also plan your electrification project to align with the safety standards outlined in the National Electrical Code and any other local building code requirements.

Besides ensuring that your charging equipment works as expected, a licensed electrician will plan this project safely and help prevent any potential hazards linked to charging your EV at home.

Electric vehicle charging is unlike anything else in your home and without using the proper techniques and materials, your charger installation will continue to degrade over time—potentially leading to a dangerous situation with melted components, property damages, electrical fires, injuries, or worse. Hiring a qualified electrician with experience in EV charger installation will help ensure your EV charging station is safe and continues to operate efficiently for years to come.

Can I Charge My EV At Home With Solar Energy?

If you want to go completely green, you can power your EV charger via solar panels. This approach is gaining popularity, and residential solar installations now account for 20% of all the solar energy generated in the U.S.

Residential solar prices have dropped by 50% over the past decade, and you can expect to pay an average of $12,700 for a solar array, with an average cost of $2.86 per watt before incentives.

You can save on solar by taking advantage of the 30% federal solar tax credit along with state and local incentives. You should also know that this 30% tax credit extends to battery storage solutions if they are connected to a solar array.

There are some important considerations before going solar, such as the solar coefficient of your property. You should have a professional conduct a solar assessment to better understand how much solar energy you can expect to generate with this investment.

If your property is a good candidate for solar, you can store the energy you generate into a battery system to charge your EV as needed or join a net metering program to benefit from an energy credit when you need to charge your EV.

Which EV and Electrification Incentives Are Available to Me?

You can offset the cost of your EV home charger installation by taking advantage of incentives, including federal tax credits introduced by the Inflation Reduction Act.

Federal Tax Credits

The Alternative Fuel Vehicle Refueling Property Credit allows you to claim up to 30% of your EV charging installation cost on your tax return. Note that it’s a nonrefundable credit, which means you won’t be able to claim it if you don’t owe any taxes.

There are a few limitations, but you can likely claim the credit as long as you don’t live in an urban area or a low-income community.

If your electrification project entails upgrading your electrical panel, you can also claim the Energy Efficient Home Improvement Tax Credit. This 30% tax credit has a limit of $600, and you can’t claim more than $3,200 a year between various energy-efficient projects.

Another 30% federal tax credit exists for residential solar projects. The Federal Solar Tax Credit for Photovoltaics applies to solar panels, wiring, battery storage solutions, and sales taxes.

State and Utility Incentives

You can take advantage of additional programs available at the state, local, or utility levels. These programs can include sales tax exemptions, rebates on charging stations, preferred TOU rates for charging, and more.

For instance, you can claim 25% of the value of a residential solar project as a state tax credit if you live in South Carolina. If you live in New Jersey, you can qualify for a limited property tax exemption by going solar.

Your utility provider might also offer incentives. For instance, Burbank Water and Power customers in California can receive a rebate of $1,500 to cover the cost of installing an EV charging station or upgrading an electric panel.

In Minnesota, Otter Tail Power Company customers can receive a $500 rebate for the installation of a Level 2 charging station and benefit from a TOU rate that is less than half the regular rate for EV charging.

Each program has its unique rules and requirements, and we encourage you to explore options available in your area.

The Alternative Fuels Data Center has a comprehensive database of incentives available at the state, municipal, and utility levels. You can also check the Database of State Incentives for Renewables & Efficiency to learn more about solar incentives.

Keep in mind that incentives can be combined. For example, you may be able to use a state rebate in conjunction with a federal tax credit. There is no need to choose between them. If multiple incentives apply, you can take advantage of them all to further increase your savings.

If you’re a tenant in a multifamily property, you should know that a growing number of states are adopting Right to Charge laws in an effort to remove barriers that might exist for tenants who wish to install charging stations.

However, your landlord might qualify for additional incentives by upgrading their multifamily property instead of expecting you to pay for the charging equipment. For instance, in Michigan, Consumers Energy offers a rebate of up to $7,500 for installing EV charging stations at multifamily properties.

How Can I Finance My Electrification Project?

Even with all these incentives, upgrading your home electrification capacity can still be expensive. Luckily, different tools are available to help you finance these upgrades and invest in the future.

Solar and Electrification Loans

Online lenders, banks, and credit unions offer personal loans you can use to finance your EV charger installation, electrical upgrades, solar array, or other projects.

Some lenders even offer lower rates for energy-efficient projects. Your project will have to meet a few requirements, such as installing an Energy Star EV charging station or upgrading your home with a smart electric panel.

These loans typically cover the cost of the equipment and might place a lien on your property. Terms, APRs, and fees will vary, so take the time to compare different lending products to get a better idea of the cost of borrowing.

PACE Financing

Property Assessed Clean Energy Programs allow you to borrow money and repay it through assessments on your property tax bill.

You can find PACE programs in California, Missouri, and Florida, but you should know that not all counties participate in PACE financing. There might be additional requirements for your electrification project to qualify.

PACE financing typically comes with a term of 10 or 20 years, and most programs allow you to pass on the lien on your property to the new owner if you decide to sell.

HELOCs

A Home Equity Line of Credit allows you to leverage the equity you have in your home to finance various home improvement projects, including renewable energy or EV charging projects.

You can get a HELOC from any lender, even though it might be easier to qualify for a HELOC if you apply through your existing mortgage provider. HELOCs are a flexible option that allows you to spend funds as needed, much like a traditional credit card.

The other advantage of financing your EV home charger installation with a HELOC is that your project won’t have to meet specific requirements to qualify. Plus, you can use this line of credit for costs other programs might not cover, such as trenching work or structural upgrades to your garage to make EV charging more convenient.

Leasing Options

If you’re considering going solar, you should know that you don’t necessarily need to purchase the necessary equipment. Leasing the equipment is an alternative that significantly lowers the project’s upfront cost.

Under this model, a third-party company will own the panels. You might have the option to purchase the equipment when the lease is up, but you can also decide to upgrade your solar array with newer equipment at that time. Some leases can be transferred to a buyer if you decide to move.

Alternatively, one can enter a Purchase Power Agreement (PPA), where a third party owns the solar panels and purchases the energy generated by the system. These programs are usually available through utility providers.

Leasing EV charging equipment isn’t a popular option, but it could become available in the future.

Financing With Qmerit

Qmerit offers financing packages for all of your electrification needs, including EV charging stations, smart panel upgrades, battery storage, and solar integration.

Our licensed installers can perform an assessment of your electrical infrastructure, discuss your options, and put together a detailed quote for your electrification project.

Once you know more about the total cost, we can discuss your financing options and help you select a package that suits your needs and budget.

Take the Next Step In Your Electrification Journey With Qmerit

Upgrading your home with an EV charger isn’t something you can do by yourself on a weekend. Instead, you’ll need skilled professionals who can safely make the changes to your home and ensure that your investment is protected and done the right way.

As the largest network of certified EV charger installers in North America, Qmerit is the most trusted EV charger installation partner recommended by automakers, EV charger manufacturers, utilities, businesses, and homeowners alike.

But don’t just take our word for it. Rated #1 in customer satisfaction, Qmerit’s experienced network of certified electricians has installed more than 450,000 EV charging stations in homes and businesses across the U.S. and Canada!

Give us a call at (888) 272-0090 or complete our online EV assessment to find out why we’re North America’s most trusted EV charger installation service provider today!